How to Register for the Startup India – An Initiative by Govt of India
“Starting a Startup Revolution” – Startup India
In 2016, the Government launched an initiative called Startup India for the nascent startups across the India. The main aim is to build a platform for startups to provide funding and support for sustainable economic growth. Also, it encourages the partnership between industry and institutions to boost the innovation sector. The plan, in particular, recommends a great number of incentives and promising benefits to startups. Now the question arises, how can a startup register under this scheme?
The legal definition states, an entity registered as a private limited company, or a registered partnership firm, or a limited liability partnership and fulfil other necessary requirements are eligible to register. The registration for the startup India is through an online portal or the mobile app (launched April 2016).
Register for Startup India
First, let us discuss the supporting documents required for the application:
- Recommendation (regarding nature of business) in a format specified by DIPP from an Incubator,
- Letter of support by an Incubator which is funded by Central or any State Government as part of specified scheme to promote innovation,
- Recommendation by an Incubator recognized by Government of India,
- Letter of funding of not less than 20% in equity by an Incubation/angel fund, private or accelerator fund registered with SEBI that endorses it as innovative nature of the business,
- Letter of funding by Central or State Government as part of any specified scheme to promote innovation,
- Patent filed and published in the journal by the India Patent Office in areas affiliated with the business being promoted.
- Incorporation/Registration certificate,
- Brief note on Innovativeness of products or services provided by the legal entity.
- Self-certification by the entity, it has not exceeded INR 25 crore for any financial year; works towards innovation and; not split from an existing business.
If you have above relevant documents pertaining to your business, then registration procedure comprises following three steps:
- Setup a certified entity (private, partnership or registered partnership),
- Get the required documents like recommendations, letters of support, publish patent and attain innovation idea certificate.
- Then, fill up the form with accurate information, upload the documents and submit. That’s it.
You can also download the Startup India mobile app to register for Startup India and below is the installation guide:
- Download the app file from links provided on your mobile.
- Click on the downloaded .apk file.
- A pop-up will load, which will guide you through the installation process.
Moreover, Startup India action plan divides the scheme to three categories:
(a) Simplification and Handling
This allows startups to self-certify the compliances involving 9 labor and environment laws (fall under ‘white category’, CPCB) with no inspection for initial 3 years. In addition, Startup hub acts as a single point of contact for better exchange of knowledge; the launch of an online portal and mobile app for easy registration processes; and access to excellent IPR services.
(b) Funding and Incentives
Startups have tax exemption for first 3 years, on investments of fair market value (FMV) and, on capital gains. Providing funding support through Fund of Funds with a corpus of INR 10, 000 crore. Life Insurance of India (LIC) will be a co-investor in this category too. Also, the banking system will initiate credit guarantee fund for startups through its funding schematics.
(c) Industry-Academia Partnerships and Incubation
It actually offers a podium to promote industry-academia partnership. The startups could have better interactions and collaborations, both at national and international levels. The government is also setting up incubators and innovation centers across the nation in cooperation with private and public enterprises/institutions. Besides, a proposal has been shared to set up 7 New Research Parks on the model of IIT Madras Research Park in various sectors.
According to the Status report of Startup India, 15 proposals for TBIs and 14 proposals for Startup centers are recommended by National Expert Advisory Committee (NEAC) under MHRD. Nearly 25, 000 queries are received until December 2016 indicating high numbers of applications. However, the figures would increase in coming years.